[amibroker] Trading the Positivity of Volume - An Indicator

[gerardncarey@xxxxxxxxxxx]

Hi all,
“Trading the Positivity of Volume”

I recently developed this indicator looking to 
obtain ‘Volume Confirmation’ of short-term 
entry signals. 
I wanted an indicator that displayed the short-term 
positive and negative Momentum of Volume.
It was intended to be for use ONLY on less volatile 
Stocks/whatever.  

Basically its calculation is a variation on the theme of; 
“If today’s close is greater than yesterday - add todays volume”
and vice versa.
Here, the indicator’s first calculation (CondA) is based on;
“If a 10-day WMA of today’s Close is greater than yesterdays - add
todays 10-day WMA of Volume”, and vice versa.

For brevities sake I will not elucidate on the other calculations, you
can check that out.
But I would say that it appears to signals changes in positive/negative
volume at, or sometimes prior to, directional price change.

The attachment shows the indicator plotted below my "Trading the
Kaleidoscope" indicator on which arrows signal possible entry areas.
(Green for longs, red for shorts) 
For visual clarity, these arrows have been copied onto the ‘Price’ and
‘Positivity of Volume’ panes.

Regds
Gerard

// Trading the Positivity of Volume
// Gerard Carey - 15th May 2006

CondA=IIf(WMA(C,10)>Ref(WMA(C,10),-1),WMA(V,10),-WMA(V,10));

C1=CondA-Ref(CondA,-1); 
C2=CondA-Ref(CondA,-2); C3=CondA-Ref(CondA,-3);
C4=CondA-Ref(CondA,-4); C5=CondA-Ref(CondA,-5); 
C6=CondA-Ref(CondA,-6); C7=CondA-Ref(CondA,-7); 
C8=CondA-Ref(CondA,-8); C9=CondA-Ref(CondA,-9);
C10=CondA-Ref(CondA,-10); C11=CondA-Ref(CondA,-11);
C12=CondA-Ref(CondA,-12);

CA= (C1+C2+C3+C4+C5+C6+C7+C8+C9+C10+C11+C12)/12 ;

Plot( CA,"Trading the Positivity of Volume",1,4);
Plot(0,"",4);
-- 
  Gerard Carey
  gerardncarey at fastmail dot fm

-- 
http://www.fastmail.fm - Email service worth paying for. Try it for free



------------------------ Yahoo! Groups Sponsor --------------------~--> 
Protect your PC from spy ware with award winning anti spy technology. It's free.
http://us.click.yahoo.com/97bhrC/LGxNAA/yQLSAA/GHeqlB/TM
--------------------------------------------------------------------~-> 

Please note that this group is for discussion between users only.

To get support from AmiBroker please send an e-mail directly to 
SUPPORT {at} amibroker.com

For other support material please check also:
http://www.amibroker.com/support.html

 
Yahoo! Groups Links

<*> To visit your group on the web, go to:
    http://groups.yahoo.com/group/amibroker/

<*> To unsubscribe from this group, send an email to:
    amibroker-unsubscribe@xxxxxxxxxxxxxxx

<*> Your use of Yahoo! Groups is subject to:
    http://docs.yahoo.com/info/terms/

Attachment: Trading Volume Positivity.doc
Description: MS-Word document